Protocol on Ireland/Northern Ireland

Lord Frost Excerpts

Thursday 27th May 2021 Lords Chamber

[Lord Dodds of Duncairn]

To ask the Minister of State at the Cabinet Office (Lord Frost) what steps Her Majesty’s Government will take to prevent any negative impact on Northern Ireland from the Protocol on Ireland/Northern Ireland.

[The Minister of State, Cabinet Office (Lord Frost) (Con)]

My Lords, as I have set out on many occasions, it is clear that the protocol is presenting significant challenges for many in Northern Ireland and across the whole of the UK. Solutions must be found urgently to address these. We remain committed to working through the issues with the EU, and we hope that it will show common sense and take a pragmatic risk-based approach to the problems. We continue to consider all our options in meeting our responsibility, which is also the purpose of the protocol, to protect the Belfast/Good Friday agreement and the peace process.

[Lord Dodds of Duncairn (DUP)]

I thank the Minister for his Answer. In the protocol court case that is being taken in Belfast, the Government have argued, astoundingly, that parts of the Act of Union itself have been impliedly repealed by the protocol. That is an incredible position for a Conservative and Unionist Government to find themselves in. Does the Minister accept that, as well as the serious economic difficulties and diversion of trade being caused by the protocol, this assertion of constitutional vandalism will add immensely to the serious societal difficulties in Northern Ireland, one expression of which is the almost nightly occurrence of peaceful protests in Northern Ireland, which are largely unreported but reflect a widespread dismay at the unbalanced approach to the political and peace process? The Minister talked about solutions. Can he indicate a timetable for solutions that reflects the urgency and gravity of the situation?

[Lord Frost (Con)]

My Lords, obviously I am not able to comment on the specifics of litigation while it is ongoing. I point out that the protocol itself is clear that it is without prejudice and has no effect on the territorial integrity of the UK or its essential state functions. That is a very important element of the protocol.

We understand the dismay and concern about identity that is provoked by the way the protocol is currently being implemented, and we are attempting to respond to that as a matter of urgency. There are a number of timetables in parallel here: the negotiating process, the grace periods themselves and the political timetable in Northern Ireland must all be kept in step if we are to find solutions to these issues.

[Lord Dubs (Lab) [V]]

My Lords, it is fairly clear that the Minister is unhappy with the protocol, or at least the way that it is working out. Will he indicate what the Government’s strategy is for achieving a better outcome regarding the protocol, given that, if neither we nor the EU know what is going on, it is hard to see how we are going to move forward? What is the Minister’s proposal?

[Lord Frost (Con)]

My Lords, the noble Lord is right to observe that we are not particularly happy with the way that the protocol is being implemented. Our hope is that we can find solutions to this with the European Union. I speak frequently to my EU colleague, Maroš Šefčovič, and our teams are in regular touch. Talks are going on semi-continuously on these questions and we hope to have made progress in dealing with some of the most difficult issues by the time of the joint committee, but obviously it takes two sides to move forward and find pragmatic solutions. Progress is limited at the moment but we keep working at it.

[Baroness Suttie (LD) [V]]

What progress, if any, has been made towards achieving an EU-UK veterinary agreement?

--- Later in debate ---

[Lord Frost (Con)]

My Lords, we would have liked, in the negotiations last year, to have established as part of the TCA an agreement on equivalence for SPS and food standards that could have been framed as a veterinary agreement or in other forms, but the EU was not willing to agree such a process. We remain willing to try to do so if it wishes to. What we cannot agree to is dynamic alignment of our rules with those of the EU because it is a fundamental tenet that we must have control of our own laws and rules if we are to do free trade deals and get the full benefits of Brexit. Once again, we keep working to see whether we can find a compromise on this issue that works within both sides’ red lines, but at the moment we are not succeeding in doing so.

[Lord Caine (Con)]

My Lords, does my noble friend agree that it is completely insane that a packet of Sainsbury’s Cumberland sausages destined for its Forestside store in Belfast has to undergo cumbersome checks on entering Northern Ireland from Great Britain due to fears that it might illegally enter the EU single market, when Sainsbury’s does not have a single store in the EU? Could there be a clearer example of the pressing need on the part of the EU to adopt a more sensible, pragmatic and proportionate approach to the implementation of the protocol, and to put an end to this utter madness?

[Lord Frost (Con)]

I certainly agree that it seems curious to us that there needs to be extensive process paperwork as well as the possibility of checks for goods that do not present any risk of moving into the EU’s single market. Obviously we agree that it is important to protect the integrity of the EU’s single market, but that needs to be done on a sensible risk-based basis. It was because of concerns such as this that we had to extend the grace period relating to supermarkets earlier this year, as is well-known, and why we remain concerned that a permanent solution to this problem has not been found yet.

[Lord Empey (UUP) [V]]

My noble friend the Minister will be aware of the report from Marks and Spencer yesterday which revealed the cost to that company of its operations on both sides of the Irish border. This huge, undemocratic and bureaucratic superstructure we have created is surely totally out of proportion to the tiny amount of trade, in European terms, that flows across the Irish border. Will my noble friend and the colleagues he is negotiating with at the EU seriously talk to some people about realistic alternatives that achieve the objective of protecting the single market but do not cause the divisions within the United Kingdom that this protocol has caused?

[Lord Frost (Con)]

My Lords, we looked very closely, obviously, at the report from Marks and Spencer earlier this week and the costs that it has identified as being connected to the protocol. It is important to note that, although it is sometimes said that we are not trying to implement the protocol, in fact both companies and this Government have shouldered very considerable costs trying to do so—both in the private sector and, for us, in the trader support scheme, movement assistance scheme and so on. All of that is having a chilling effect on the ability to move goods across the whole of the UK, which is causing so much difficulty, so we need to find a realistic and lower-cost, risk-based approach to doing this. That is what we hoped to see and we continue to hope that we can agree with the European Union.

[Lord Murphy of Torfaen (Lab) [V]]

My Lords, dialogue is always better than legal writs and newspaper articles, so I welcome the Minister’s recent visit to Northern Ireland to meet businesses and communities. Can he now tell us if he has any immediate plans to meet officials of the European Union, the Irish Foreign Minister Simon Coveney and the leaders of all the political parties in Northern Ireland to discuss these difficult issues around the Northern Ireland protocol?

[Lord Frost (Con)]

My Lords, I remain in contact with all those whom the noble Lord has suggested that I should be in contact with. I talk to my European Union opposite numbers frequently—in fact, I had a meeting with the EU ambassador this morning. I remain in close touch, as does my right honourable friend the Secretary of State for Northern Ireland, with all ranges of opinion in Northern Ireland.

[Baroness Hoey (Non-Afl) [V]]

My Lords, the protocol is causing immense harm to peace and stability in Northern Ireland, as well as to businesses and consumers. However, now people all over the UK are angry about the ridiculous EU rules on pets traveling from Northern Ireland to GB and from GB to NI. What message would the noble Lord give to Christopher, who is a 13 year-old boy in County Fermanagh who helps train dogs for search and rescue? He is a champion at dog trials but now, because of the cost and bureaucracy of travelling back taking his dog, he will not be able to attend dog trials any more. There are rabies injections, worming and pet passport paperwork, which are all needed each time he takes his dog from one part of the UK to another. The EU is clearly not listening to the people of Northern Ireland, nor cares about the people of Northern Ireland. Does the Minister? I know he does, so when will the Government recognise that the EU does not care and just pull the plug on this protocol?

[Lord Frost (Con)]

My Lords, this is a good example of a problem that we saw no reason should arise when the protocol was negotiated but has nevertheless arisen. We are concerned about the difficulties in moving pets from Great Britain to Northern Ireland and in the other direction. The EU has it in its power to deal with this problem by giving us part 1 listing for pets as it does for many other countries and for which dynamic alignment is not required. We had assumed that this would be what happened; unfortunately, it has not been granted to the UK. We have part 2 listing and that is why the problems persist. It remains in the EU’s power to change this situation if it wishes.

[The Deputy Speaker (Lord Faulkner of Worcester) (Lab)]

My Lords, the time allowed for this Question has elapsed.

UK-EU Trade and Co-operation Agreement: Regions and Industrial Sectors

Lord Frost Excerpts

Thursday 27th May 2021 Lords Chamber

[Lord Purvis of Tweed]

To ask the Minister of State at the Cabinet Office (Lord Frost) whether Her Majesty’s Government still plans to commission an impact assessment of the United Kingdom–European Union Trade and Cooperation Agreement on regions and industrial sectors when the economy returns to normal.

[The Minister of State, Cabinet Office (Lord Frost) (Con)]

My Lords, the Government routinely publish a wide range of analysis on the UK economy and will continue to do so as appropriate. Many bodies, such as the OBR, also regularly publish economic analysis on the impact of our trade deal with the EU. All this contributes to the public debate in this area. We keep this matter under review, but meanwhile we will continue to take full advantage of the opportunities available to us as an independent trading nation.

[Lord Purvis of Tweed (LD)]

My Lords, the ONS publication on Tuesday this week detangled the impacts of Covid and the impacts of the TCA by comparing quarter 1 2021 figures with quarter 1 2018 figures—the last period in which

“relatively stable trade patterns were observed.”

Non-EU trade for the UK fell by 0.8% over that period; EU trade fell by an enormous 23.1%. That shows clearly the difference between Covid-19 and the TCA. How can the Minister explain the difference in that fall?

[Lord Frost (Con)]

My Lords, I read the ONS report with interest. It confirms the position on trade, which I have set out on several occasions before: that there are a number of factors prevailing here. It is true that 2018 may well have been the last full year of normal trading conditions, but we are still in a pandemic. Economies have not returned to normal, so it is not entirely surprising that trade figures have also not returned to normal at the moment.

[Baroness Neville-Rolfe (Con)]

My Lords, perhaps the most pressing issue facing the country, other than Covid, is discerning the best way forward post Brexit, economically and in other ways. Whether drawing up an impact assessment would be the most helpful method is doubtful in this case. However, does my noble friend the Minister agree that a full evaluation of the new opportunities that he has mentioned is now essential?

[Lord Frost (Con)]

My Lords, I agree with my noble friend that there are huge opportunities from Brexit, and we are taking those forward as set out in the Government’s legislative programme: a subsidy control Bill, a procurement Bill, a National Insurance Contributions Bill, a freeports programme and so on. These are all huge opportunities. It might be premature to do an immediate evaluation of the effect of all those before they have been introduced and brought into force, but of course impact assessments will go with the necessary legislation in this area.

[Lord Liddle (Lab)]

My Lords, I am sure the Minister is well aware of the excellent work of the Centre for European Reform under its director, Charles Grant. I would like his reaction to the latest report authored by its distinguished economist John Springford, published on 12 May, about the first quarter of trade data. The conclusion is that

“leaving the single market and customs union had reduced UK trade by 11 per cent in March 2021. That is on top of a 10 per cent hit to trade between the referendum and leaving the single market.”

He goes on to say that several more months have to pass before we can be certain of these impacts, but that

“it is becoming clearer that the impact cannot be dismissed as temporary.”

Does the Minister agree? Is he proposing to set in hand immediately a review of how these problems can be mitigated?

[Lord Frost (Con)]

My Lords, I looked at the CER report with a lot of interest. It is one in a series of reports that has, I think, been subject to some methodological debate, at least. I am not sure I personally think it entirely valid to set up a kind of mock economy based on other parallel economies and draw conclusions from that, which I understand to be the methodology. I do not think we dispute that there have been changes in trade patterns in recent months, but as the ONS said in its report published on Tuesday:

“It is difficult to fully detangle the impact the coronavirus and EU exit had on UK and international trade while they are still having an influence.”


That remains the case.

[Baroness Ludford (LD) [V]]

Can the Minister include, in any assessments he can be persuaded to carry out, the loss of EU nationals in sectors such as horticulture and social care? It is reported that workers may be brought in from Belarus and Russia to pick our fruit and veg, in replacement for EU nationals. Can he rule that out? Do the Government not think it better to invite some of the EU nationals back to help us in those sectors, rather than let them be detained and deported when they come for a job interview, as permitted under the Immigration Rules?

[Lord Frost (Con)]

My Lords, one of the great benefits of ceasing to be a member of the European Union was that we could establish our own immigration system, and indeed we have done so, on the basis of the points-based system that has been extensively discussed and implemented. The advantage of that is that it gives us control of who we wish to let enter the country, either temporarily or permanently. Obviously, when we make that assessment we look at the industries, the economics and the broader situation. We will continue to do so when we make those judgments.

[Baroness Hayter of Kentish Town (Lab)]

The Minister and the Prime Minister seem to claim that they did not know quite what the protocol would imply and how tricky it would be to make it work. In front of our European committee last week, the Minister confessed that he was a bit surprised about how disruptive it was, and said it could remain

“a bit bumpy … for some months”.

Is it possible that, because the vigorous work was not done before that protocol was signed, he is surprised by the implications of it? Even now, it might be helpful if he publishes the legal advice that was available at the time.

My other question is this. Given that there are still very many decisions to be taken, both by the Government in implementing the agreement and together with the EU in the Partnership Council, can he undertake that there will be proper impact assessments before big decisions are made and that these will be published and discussed widely, so that he has the benefit of the wisdom of Charles Grant and others before big decisions are taken?

[Lord Frost (Con)]

My Lords, on the Northern Ireland protocol, the issue is that the protocol is a very delicately balanced document designed to support a very delicately balanced agreement—that is, the Belfast/Good Friday agreement. When the protocol is implemented it needs to have regard to that balance and the set of provisions that try to protect this delicately balanced situation. At the moment, in our view, the protocol is not being implemented in a way that reflects that balance. It does not reflect the full dimensions of the Good Friday agreement, east-west and north-south, and that is at the root of the difficulty. That is not what we expected when we agreed it, but we still hope that we can get into that situation in discussions with the EU in the weeks and months to come.

On future impact assessments, when legislation is needed to implement reforms or changes, whether these result from the TCA or from anything else, there will of course be an impact assessment. That is the usual practice.

[Lord Lamont of Lerwick (Con) [V]]

Does my noble friend agree that it is absurd to attempt to measure the impact of Brexit in such a short term, as suggested by the noble Lord, Lord Purvis, and others, and that other factors will be difficult to separate from Brexit? Above all, new policies, whether they be domestic policies or trade agreements, take time to build up, and the impact of Brexit over one year, five years or 15 years will be very different. Do all these questions not sound suspiciously like attempts to rerun the Brexit referendum, and is it not time that we all recognised that the result has to be accepted and we should move on?

[Lord Frost (Con)]

I agree with my noble friend. These questions have been extensively debated over the last five years and the range of views on that subject has possibly not changed significantly over that period. Our view is that the medium-term benefits of being a full democracy, of having control over our own laws and regulations and having the ability to tailor them to our own requirements as a country, will be of huge benefit to us, so we are very confident that those benefits will materialise. However, he is right that five months after the end of the transition period is a bit soon to be 100% clear about that.

[The Deputy Speaker (Lord Faulkner of Worcester) (Lab)]

My Lords, all supplementary questions have been asked.

UK–EU Trade and Co-operation Agreement: Meetings of Bodies

Lord Frost Excerpts

Thursday 27th May 2021 Lords Chamber

[The Earl of Kinnoull]

To ask the Minister of State at the Cabinet Office (Lord Frost) which of the 24 bodies set up under the United Kingdom–European Union Trade and Cooperation Agreement met in May; and how many are anticipated to have met by the end of June.

[The Minister of State, Cabinet Office (Lord Frost) (Con)]

My Lords, now that the trade and co-operation agreement has been ratified, its committees and other bodies can indeed begin their work. None has met so far, but we will agree the date for the first meeting of each of those bodies with the EU shortly. We expect most to meet before the summer break. We also expect to fix a date for the first partnership council meeting, which is likely to be in the first half of June.

[The Earl of Kinnoull (CB)]

My Lords, the TCA will be six months old at the end of June, and to hear of the lack of activity is dispiriting. Its multi-layered governance structure is incredibly important to getting the parties to iron out the problems, and to discussing the next layer down of the detail of the new relationship. Can the Minister tell the House by when all the bodies will have members appointed, and will he commit to publishing monthly basic statistics on the number of meetings taking place, to demonstrate activity?

--- Later in debate ---

[Lord Frost (Con)]

My Lords, I agree that it is extremely important that all the bodies created under the trade and co-operation agreement should meet and work effectively. I can assure the noble Lord that there has been no lack of activity between me and my EU opposite numbers and our teams during this period, but I agree that it will produce stability when the committees are working properly. We will do everything we can to ensure that there is good transparency about meetings and what is discussed.

[Lord Wood of Anfield (Lab)]

My Lords, when the Minister resumes partnership meetings with the EU, presumably the Northern Ireland protocol will be at the top of the agenda. Can he tell us what his response is to the remark by the President of the European Commission on Monday, that the protocol is the

“only possible solution to ensure peace and stability in Northern Ireland while protecting the integrity of the EU single market”?

As the co-architect of the protocol, does he accept responsibility for its consequences, which were widely predicted, and which now seem to trouble him, too, so much?

[Lord Frost (Con)]

My Lords, the question of the Northern Ireland protocol will, I am sure, be on the agenda of the joint committee when that meets, which should be at approximately the same time—in the first half of June. We have noted the comments of the Commission president earlier this week. The protocol relies on the support of all communities in Northern Ireland, so it is disappointing that there was not more recognition by her of the impact that its operation is having there—but we continue the discussions and hope to be able to find pragmatic solutions.

[Lord Moylan (Con)]

My Lords, is my noble friend aware that many noble Lords are rather relieved that this plethora of committees remains inoperative? They are wholly disproportionate to a trade agreement, and we do not see the need for them, or for the expense of the caravan of secretariats that they will no doubt bring with them. Does my noble friend agree to make it an objective of British government policy in his current discussions that their number and scope of activity be radically reduced?

[Lord Frost (Con)]

My Lords, I share my noble friend’s distaste for bureaucracy in all its forms, even though I have spent most of my life working in one. It is, unfortunately, a characteristic of international relations nowadays that there is a substantial bureaucratic component, and we have to work with that. I hope that the various committees that have been created will help us to resolve problems. I can reassure my noble friends that the bureaucracy is, at least, much less than when we were a member of the European Union.

[Lord Wallace of Saltaire (LD)]

My Lords, is it the Government’s objective, nevertheless, to get the full panoply of relations and committees working well, as we have to manage a very wide agenda of continuing close relations with the European Union? Do the Government have it in mind that they could take the Swiss option, as it were, and break the series of complex negotiations and treaties that they have with the EU—which, as he will know, the Swiss have just done?

--- Later in debate ---

[Lord Frost (Con)]

The noble Lord is right, in that the trade and co-operation agreement is an extremely broad treaty, with a very wide agenda. That is why it requires so many committees to make it work. I can reassure him that it is certainly our objective to make sure that the committees work, and that they meet, if at all possible, before the summer break. We have already exchanged with the EU lists of chairs of the committees, and I am confident that we will move forward fairly quickly on all this.

[Baroness McIntosh of Pickering (Con)]

Does my noble friend agree that if the trade specialised committee on SPS measures had been set up and had actually met, we might be in a better place as regards cross-border trade issues between Great Britain and Northern Ireland, and between the UK and the EU? Will he endeavour to ensure that it meets at least once before the end of June, to resolve these issues?

[Lord Frost (Con)]

My Lords, unfortunately, I am not sure that I agree with my noble friend that we would be in a significantly different position if that committee had met. There have been quite a lot of discussions on SPS issues in various contexts over the past few months, although the committee has not met formally, and we have not managed to find constructive agreements on that subject—although we keep trying. I am confident that the committee will meet before the summer break, and of course we continue to discuss these matters extensively with the EU.

[Baroness Wheatcroft (CB)]

My Lords, in negotiating the TCA, the UK Government succeeded in putting the UK’s extradition arrangements with the EU on a similar unbalanced footing to those with the US. We continue to extradite to the EU, but 20 EU countries will not extradite directly here. Are negotiations going on to try to rectify that?

[Lord Frost (Con)]

My Lords, extradition arrangements were indeed the subject of quite a large part of the negotiations, and in our view—the Government’s view—the agreement that we reached with the EU deals with many of the defects that were present in the earlier European arrest warrant system. It is part of the standard way in which extradition arrangements work that member states can, in certain circumstances, refuse to extradite their own nationals, and some member states have made that clear. We continue to discuss this issue with the Commission and all the member states concerned.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, the multi-layered governance structure mentioned by the noble Earl is not the only thing that needs to be set up under the TCA. The civil society forum and the domestic advisory group are vital channels into Government, and the partnership council decisions. The UK cannot by itself set up the joint forum, but it can—and surely should—establish a domestic advisory group to feed into the forum. Can the Minister, who is responsible for getting this going, tell us the date when that will happen, and assure us that preparations go a little beyond what he referred to in his Written Answer to me this week—just to

“engage with business and civil society”?

I think it is time for action now.

--- Later in debate ---

[Lord Frost (Con)]

My Lords, the TCA provides for a civil society forum. It has to be balanced between UK and EU business and civil society groups to discuss the implementation of the agreement. We are in touch with the EU about how this will work. We will work very much to facilitate its first meeting this year. We are engaging actively with business and civil society domestically, and I am happy to write to the noble Baroness about the detail of where that has got to.

[Lord Jones of Cheltenham (LD) [V]]

Is the noble Lord making any progress on negotiating a new deal for the creative sector on touring in Europe? While he is thinking of a plausible answer to that, can he tell us whether, when he decided to reject the EU’s generous offer in the negotiations and throw touring musicians under a bus, he anticipated, is surprised by, or accepts any responsibility at all for the humiliation of our country scoring zero—nul points—in the Eurovision Song Contest?

[Lord Frost (Con)]

My Lords, I am happy to accept responsibility for many things but I do not think I can reasonably accept that I affected the result on Saturday night. As regards creatives, of course we work to support all our creative industries in the situation that now prevails under the TCA. We made proposals in the negotiations that would have largely solved the difficulties faced by our great creative industries. The proposals made by the EU would not have done so, so we would be in this situation. We are now working as hard as we possibly can with the member states to establish the facts about visas and to support our industry in moving forward.

[The Deputy Speaker (Lord Faulkner of Worcester) (Lab)]

My Lords, the time allowed for this Question has elapsed.

Vice-President of the European Commission

Lord Frost Excerpts

Thursday 29th April 2021 Lords Chamber

[The Minister of State, Cabinet Office (Lord Frost) (Con)]

My Lords, I last met Vice-President Šefčovič informally, in Brussels, on 15 April. That was principally to discuss the Northern Ireland protocol. No date for a future meeting has yet been fixed, but we and our teams are in regular contact about a range of issues, regarding both the withdrawal agreement and the trade and co-operation agreement. I am confident that we will meet again soon.

[Lord Adonis (Lab)]

My Lords, I am grateful to the noble Lord for meeting me and other noble Lords recently to discuss the question of an SPS veterinary agreement, which is causing such difficulties for our shellfish and agricultural exports. We discussed the possibility of an equivalence regime, which would continue until either we or the EU found it unsatisfactory because of further changes. It seemed to me that pragmatic ideas like this might be a way forward. When the Minister meets the Commissioner, might he discuss them further?

[Lord Frost (Con)]

My Lords, these ideas are very much on the agenda in our discussions, although the differences between our position on the subject and that of the European Union remain significant. Nevertheless, we hope to have a constructive dialogue and see whether there is room to explore this further. As I have noted, the EU has been reluctant to move forward to an equivalence-based agreement, but we remain open to that and hope that it will also be in due course.

[Lord Lamont of Lerwick (Con)]

My Lords, does my noble friend the Minister agree that, while it is good news that the TCA was ratified by the European Parliament, parts of Mrs von der Leyen’s speech, with its talk of baring “teeth” and imposing tariffs, was deeply disappointing, not to mention rather unfriendly? By contrast, Monsieur Barnier said Brexit was

“a failure of the European Union and we have to learn lessons from it”.

When my noble friend meets Mr Šefčovič, will he stress that we want partnership and co-operation, and not continuing antagonism? It is time to put hurt behind them.

[Lord Frost (Con)]

My Lords, I very much agree with my noble friend. As I made clear yesterday, I hope that we can now begin to move forward on a new chapter together, as Europeans. We want a relationship based on friendly co-operation between sovereign equals. That is what we have always wanted. I note that, a few days ago, the EU head of mission said:

“We are still in the process of accepting that the UK is no longer a member of the European Union.”


I hope that that process of adjustment can be completed as soon as possible, that the language on the EU side can be toned down and that we can move forward together.

[Lord McNicol of West Kilbride (Lab)]

My Lords, in the Minister’s recent statement following the meeting with Vice-President Šefčovič, can he clarify what the “outstanding issues” are, what “positive momentum” was established and, more crucially, what the remaining “difficult issues” are? The statement said that Vice-President Šefčovič

“agreed there should be intensified contacts at all levels in the coming weeks.”

Can the Minister expand?

[Lord Frost (Con)]

My Lords, quite a large number of issues are on the table between us and the European Union. We classify them differently, but the EU has talked of a number in the 20s, which is reasonable. We hope we are working on a joint programme to resolve some of them, but we have different perceptions of the problems. Some of the outstanding issues are SPS and food standards, pharmaceuticals, VAT and other technical arrangements. We are working intensively, at all levels, to move positions closer together and find solutions.

[Lord Purvis of Tweed (LD)]

My Lords, an HMRC email I received at the beginning of April said:

“When exporting goods from a roll-on roll-off port or any other listed location, you, or the person submitting your customs declaration, must submit your declaration as ‘arrived’.”


So before British businesses can export and have their goods leave the country, they must declare them as “arrived” in another country. When the Minister meets the Vice-President next, can he clarify that the EU is similarly asking businesses to declare their goods as arrived before they have left, or is this an insanely irrational and confusing bureaucratic requirement from his business department alone?

[Lord Frost (Con)]

My Lords, this is possibly not the moment to get into textual exegesis of HMRC guidance. I can say that we are doing our best to support UK businesses dealing with the practical consequences of leaving the customs union. There is a good deal of—I hope—intelligible guidance available to them, and most companies have now been able to deal with this new situation and are exporting successfully.

[Baroness Quin (Lab) [V]]

My Lords, I too hope that we can move quickly to solve some of the current problems facing businesses. Given the Minister’s welcome willingness to meet Members of the House, can I ask him to meet me to discuss specific ongoing problems faced by some businesses in the north-east which are threatening to jeopardise or even destroy the export trade to the EU that has been built up over many years?

[Lord Frost (Con)]

My Lords, I am always happy to meet Members of this House on EU exit and the practical issues that have emerged from it. On the broader point that the noble Baroness makes, the latest statistics published by the Office for National Statistics and HMRC show that trade in goods is close to previous levels and that companies are exporting successfully. There of course remain difficulties, which we are doing our very best to try to resolve.

[Lord Sarfraz (Con)]

My Lords, today, the European Commission held a press conference on what better regulation might look like, delivered by Mr Šefčovič. It just so happens that, also today, the City of London published its findings on the digital sandbox, an example of real-life better regulation in action. Does my noble friend the Minister agree that, post Brexit, the City of London will retain and enhance its position as one of the most competitive and innovative financial centres in the world?

[Lord Frost (Con)]

My Lords, I very much agree with my noble friend. One of the huge benefits of Brexit is that we can set regulations and rules for ourselves, for our own conditions and our own needs, rather than having to join a lowest common denominator that has been set for a wider group. We are committed to making the UK the most open and dynamic financial centre in the world, and we have every confidence that the City will prosper with our support in this new post-Brexit environment, with world-class regulation and a huge depth of expertise and entrepreneurialism.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, will the Minister agree that, before each of his meetings with Vice-President Šefčovič, he will meet our European Affairs Committee to get its views, and the views of the House, on the items on the agenda?

[Lord Frost (Con)]

My Lords, I am in relatively frequent contact, remotely and face to face, with Vice-President Šefčovič. I am not sure that I can commit to meeting before every one of those meetings. I have committed to provide agendas for joint committee and Partnership Council agreements and to appear before scrutiny Committees frequently, so that the House has a good idea of the grounds of discussions.

[Lord Fox (LD)]

My Lords, the Minister has recognised several times the problems that exporters are having with standards. Can he tell us how many times since January he has raised this issue with his counterpart, and, when they next meet, will he be proposing practical solutions that can significantly reduce the trade barriers that the lack of alignment has created?

[Lord Frost (Con)]

My Lords, the question of support for business in this new environment is being taken forward by a large number of government departments, at all levels. We have a good dialogue with the member state customs authorities that we deal with, and implementation is going forward in a very pragmatic fashion. I expect that, at the Partnership Council, practical difficulties of the kind the noble Lord mentioned will be very much on the agenda when we meet for the first time, and going forward.

[The Deputy Speaker (Baroness Fookes) (Con)]

My Lords, the time allowed for this Question has elapsed; apologies to those who were not called.

Ireland/Northern Ireland Protocol

Lord Frost Excerpts

Thursday 29th April 2021 Lords Chamber

[Baroness Hoey]

To ask the Minister of State at the Cabinet Office (Lord Frost) whether Her Majesty’s Government is aware of any assessment made by the European Commission of the instability and societal problems being created in Northern Ireland by the Protocol on Ireland/Northern Ireland.

[The Minister of State, Cabinet Office (Lord Frost) (Con)]

My Lords, I am not aware of any assessment of the kind referred to in the noble Baroness’s Question, but I have no doubt that the Commission is monitoring the situation in Northern Ireland closely. We are in regular contact with the Commission about the issues raised by the operation of the protocol. Those discussions have been serious and constructive; some positive momentum has been established but significant difficult issues remain.

[Baroness Hoey (Non-Afl)]

My Lords, there are already serious societal difficulties in Northern Ireland. Every night, across the Province, there are dozens of—mostly peaceful—protests, with people feeling ignored and betrayed. Of course, they are not reported because they are not violent. This direct action will increase over the next few months, with the worry that there is a feeling in many communities that the only way to advance political objectives is with the threat of violence—just as the threat of IRA bombs was unfortunately used by Taoiseach Varadkar as political leverage, which led to the protocol. Can the Minister assure people in Northern Ireland that Her Majesty’s Government recognise that the serious societal difficulties and instability arising from the protocol already exist, and that it is therefore unsustainable for the protocol to last much longer?

[Lord Frost (Con)]

My Lords, the noble Baroness raises an important issue. In all my interactions with Vice-President Šefčovič, I drive home the seriousness of the current situation in Northern Ireland and the overriding importance for all parties of supporting the peace process and protecting the Belfast/Good Friday agreement. I encourage the vice-president to meet business and civic groups in Northern Ireland to hear their unfiltered views; I know that he intends to do that. The solution to this problem is one in which we can work with the Commission to operate the protocol in a pragmatic and proportionate fashion.

[Lord Hannan of Kingsclere (Con)]

My Lords, the United Kingdom has concluded free trade agreements with 67 states, not counting the TCA belatedly ratified by the European Parliament this week. Can my noble friend assure this House that Northern Ireland will benefit in full from the provisions of those agreements?

[Lord Frost (Con)]

My Lords, I am happy to assure my noble friend that this Government’s intention is that Northern Ireland will benefit fully from the great trade deals we have agreed and those coming in future, which we are currently negotiating; that intention is clear in the protocol. Unfortunately, because of legislation passed by the EU, Northern Ireland does not benefit from certain TRQs in the same way as the rest of the UK. This is one of the issues that we are discussing with the Commission at the moment. We are making progress on that and I am hopeful of a satisfactory resolution.

[Lord Empey (UUP) [V]]

My noble friend will be aware that, this week, considerable political instability was introduced into Stormont, in part because of the introduction of the protocol. Can he assure us that he is encouraging his counterparts in the European Union to engage with those who know something about the Belfast/Good Friday agreement? It is perfectly obvious that they do not really have a grasp on its balance and purpose. Can he also assure us that he is prepared to meet some of us to discuss this subject?

[Lord Frost (Con)]

My Lords, I assure my noble friend that we very much encourage the Commission—at all levels, from Vice-President Šefčovič and his team down—to engage with those who have experience of the negotiation of the Belfast/Good Friday agreement and everything that followed from it. We do everything we can to drive home the importance of protecting it as central to stability in Northern Ireland. Of course, I will be happy to meet my noble friend and colleagues to discuss this further.

[Lord Stevenson of Balmacara (Lab) [V]]

My Lords, when he responded to the question from my noble friend Lady McIntosh of Hudnall, the Minister repeated his response to my question on this issue last month, which confirmed that bilateral discussions with European member states were the way forward and were continuing. The Culture Secretary in Northern Ireland and Great Britain desperately needs clarity on the short-term visa issue. Can the Minister say which EU states are involved in these discussions and give us a sense of the likely timetable for their resolution?

[Lord Frost (Con)]

My Lords, this is indeed an important and urgent matter. Our ambassadors and embassies are talking to member states to establish the facts around what kinds of visas and processes are required and, importantly, to get them to improve their guidance on how to apply. We are also trying to improve our own signposting to that guidance. Our rules for touring professionals are comparatively generous, of course. We hope that, out of these discussions, some member states will signal a wish to change their rules so that they look more like ours and enable this great touring activity to continue.

[Baroness Suttie (LD) [V]]

My Lords, given that the grace period has been extended, will the Government carry out their own full impact assessment on the Northern Ireland protocol? If not, why not?

[Lord Frost (Con)]

My Lords, the extension of the grace period is central to managing our practical discussions with the Commission on solving the current protocol arrangements. We have published and discussed a good deal of information about the impact of the protocol. We are leading these discussions in an attempt to mitigate its impact and ensure that it is implemented in a pragmatic and proportionate way.

[Baroness Smith of Basildon (Lab)]

My Lords, when I listen to the Minister talking about the Northern Ireland protocol, I sometimes think he has forgotten that he was part of the negotiating team that gave us it. A lot of these problems were highlighted before. Is not part of the problem the fact that, when the whole Brexit debate was going on, too little attention was paid to the impact on Northern Ireland? It seems that some progress is being made on the outstanding issues, but I want to know more. It seems that we leap from short-term fix to short-term fix when what is really needed is a commitment to making the protocol, as the Minister negotiated it, work for the long-term benefit of Northern Ireland and for all sides of the community. Otherwise, his negotiations amount to nothing.

[Lord Frost (Con)]

I indeed have happy memories of negotiating the current protocol, back in 2019, when our primary task was to deal with the unsatisfactory situation that we had been bequeathed; the original backstop would have kept the whole United Kingdom in the customs union and aligned with EU law in many areas. We dealt with that in the 2019 negotiations. Our expectation then was that the protocol would be implemented in a way that supported the Good Friday agreement in all its dimensions—east-west and north-south. That is not quite borne out in the way that it is being implemented at the moment, but we hope that, in discussions with the Commission, we will be able to improve the situation.

[Lord Moylan (Con)]

My Lords, if the legal action recently initiated by the European Commission over the United Kingdom’s alleged breach of the Northern Ireland protocol in March proceeds further, do Her Majesty’s Government intend to submit to the jurisdiction of the European Court of Justice? Will my noble friend say?

[Lord Frost (Con)]

We are obviously very much at the preliminary stages of the dispute settlement process to which my noble friend refers. I hope that, on reflection, the EU will agree with us that the unilateral measures that we took in March, which are the subject of this dispute, are legal, proportionate and do not require further action. If it does not, as I recall, the withdrawal agreement offers two routes for dispute settlement—normal international arbitration, or that with a role for the EU institutions—so we wait to see how and on what basis this case is taken forward.

[Lord Browne of Ladyton (Lab) [V]]

My Lords, Northern Ireland was promised the best of both worlds, but trade with the rest of the United Kingdom has reduced, not increased. Loyalists and unionists sense that they have no effective voice and that Whitehall was not honest about the consequences of Brexit. Government at the highest level must take responsibility; it must allow local politics to regain the initiative, rebuild trust with Dublin and breathe life into the British-Irish intergovernmental process. Experience shows that this requires the Prime Minister and the Secretary of State to engage directly with local parties and the broader community, listening as well as being listened to, not intermittently but continuously. Is this part of the plan to deal with this problem?

[Lord Frost (Con)]

My Lords, as I have noted, the situation in Northern Ireland has complex roots and it is important that all those engaging and dealing with it do so with the intention of supporting the Belfast/Good Friday agreement. My right honourable friend the Secretary of State for Northern Ireland is of course engaging with all parties in the current situation and will continue to do so.

[The Deputy Speaker (Baroness Fookes) (Con)]

My Lords, the time allowed for this Question has elapsed. I again apologise to those not called.

UK-EU Trade and Co-operation Agreement

Lord Frost Excerpts

Thursday 29th April 2021 Lords Chamber

[Baroness Hayter of Kentish Town]

To ask the Minister of State at the Cabinet Office (Lord Frost) what progress Her Majesty’s Government have made towards making arrangements for the (1) scrutiny, and (2) implementation, of (a) the United Kingdom and European Union Trade and Cooperation Agreement, and (b) the Partnership Council.

[The Minister of State, Cabinet Office (Lord Frost) (Con)]

My Lords, I begin by welcoming the positive vote by the European Parliament yesterday to give its consent to the trade and co-operation agreement. This puts our relationship with the European Union on a fully firm footing for the future. We can now move on to making this new relationship work and Parliament will have an important role in that, of course. We are committed to facilitating parliamentary scrutiny of this new relationship, just as we do with other international agreements.

[Baroness Hayter of Kentish Town (Lab)]

May I give a rather belated welcome to the Minister? I have been otherwise preoccupied for a little bit. Given that the deal is now ratified, will he now start setting up the civil society forum that is also part of the scrutiny and implementation of the deal? Equally urgently, given that seafood and meat exporters to the EU face substantial new non-tariff barriers with red tape and border checks, will he ensure that reducing that drastic outcome from the deal is a high priority for the Partnership Council, of which he is co-chair?

--- Later in debate ---

[Lord Frost (Con)]

My Lords, the answer is yes as regards the civil society forum. We are considering how it should be established and will provide an update in due course. We are engaging with civil society in the usual way on TCA implementation matters. As regards seafood and, indeed, food and drink exports of all kinds, we are very much supportive of businesses’ efforts to deal with the situation that has arisen after we left the EU. We put forward a fund of £20 million for small and medium-sized enterprises to help them with this issue and are doing everything we can to support them.

[Baroness McIntosh of Hudnall (Lab) [V]]

My Lords, I remind the House of my interests in the register. The noble Lord will be aware of the multiple difficulties now facing professionals in the creative industries who wish to work in Europe. If he needs reminding of the issue, perhaps I may recommend an excellent article in yesterday’s Times, under the headline “Our actors and musicians need help with Brexit red tape”. The Prime Minister indicated to the Liaison Committee on 24 March that he wanted the Government to help so, in that spirit, as we move into the next phase of our relationship with the EU, will the Government now negotiate with the EU a bespoke visa-waiver agreement for our brilliant creative industries?

[Lord Frost (Con)]

My Lords, the Government are hugely supportive of our world-class creative industries, which contribute so much to the economy and to our national life. We put forward in the negotiation ambitious solutions to the issues that they faced. Unfortunately, the EU was not willing to reach agreement on them. We are now working energetically to see if we can work with our European friends bilaterally, with the aim of reducing the most difficult barriers to travel.

[Baroness Ludford (LD) [V]]

My Lords, will the Government share and discuss with parliamentarians in both Houses their plans, priorities and timetable for widening and deepening co-operation with the EU, whether on matters including mobility for professionals such as musicians—as has been mentioned—co-ordination on foreign policy issues, or easing red tape on food and seafood exports, as requested in a report today from the Environment, Food and Rural Affairs Committee in the other place?

[Lord Frost (Con)]

My Lords, it is inevitable that there will be quite a large number of issues to be dealt with as a result of the new relationship between us and the European Union. The noble Baroness lists some of them. We will, of course, seek to deal with some of those issues in the Partnership Council as we go forward. We raised many of them during the negotiations but it was not possible to reach agreement.

[Lord Caine (Con)]

My Lords, in welcoming the ratification of the trade and co-operation agreement this week, does my noble friend, like me, find it profoundly disappointing to be lectured once again by the President of the European Commission about commitments in what is an integral part of this United Kingdom? Does he agree that the time has now come for the Commission to engage in constructive dialogue and negotiation, rather than issuing threats, to ensure that the protocol does not work to the disadvantage of our fellow citizens in Northern Ireland?

[Lord Frost (Con)]

My Lords, I of course agree with my noble friend. Northern Ireland is fully part of this United Kingdom, as the protocol makes clear. I agree that the best way forward would be for the Commission to continue the dialogue that it has begun with us in the hope that we can enable the protocol to be operated in a proportionate and pragmatic way. Those discussions are under way and there is some momentum in them but, unfortunately, significant differences remain and we will need to work those through in the weeks to come.

[Lord Curry of Kirkharle (CB) [V]]

My Lords, my interests are as recorded in the register. I should like to explore with the Minister the issue of equivalence in food production standards, which have not changed since we left the European Union. Can we now assume that trade will be freed up as a consequence of yesterday’s decision?

[Lord Frost (Con)]

My Lords, we made clear during the negotiations, and continue to make clear, that we would be ready to agree an arrangement with the EU based on equivalence. We believe that our standards of food security and biosecurity more generally are certainly equivalent. The EU was not willing to negotiate that issue last year but we remain open to discussing that this year if it would like to change its position.

[Baroness Crawley (Lab) [V]]

My Lords, in the Minister’s responsibilities for oversight of domestic transition readiness, why have so many UK government departments, including his own, not fully completed and published the common frameworks that make up the new UK internal market? It is now four months since the end of the transition period with the EU internal market, and businesses, regulators and, most importantly, consumers wish to know exactly what is happening.

[Lord Frost (Con)]

My Lords, the noble Baroness draws attention to an important issue that is central to how we operate the single market of the United Kingdom. We are in the middle of the process to which she refers but I will look into the matter and, if necessary, write to her.

[Lord Oates (LD)]

Does the Minister agree that the parliamentary partnership assembly provided for in the TCA could play a critical role in ensuring that parliamentarians at Westminster and Stormont can engage with the European Parliament, which remains a co-legislator in Northern Ireland on single market issues? Given their power of initiative in both Houses, will the Government take the lead in ensuring that this partnership assembly is established as a matter of urgency, as recommended by the House of Lords EU Committee?

[Lord Frost (Con)]

My Lords, we are of course very supportive of the dialogue between this Parliament and the European Parliament. We supported these provisions in the TCA. I am aware that discussions are taking place between parliamentarians here and Members of the European Parliament in Brussels. I look forward to briefing the House in due course on how those discussions will be taken forward; it is important that they now move forward quickly.

[The Earl of Kinnoull (Non-Afl)]

My Lords, on Tuesday, the European Commission issued a statement as part of the European Parliament TCA ratification process, with the Commission’s TCA scrutiny undertakings to Parliament. The statement said that

“the Commission will ensure that the European Parliament is immediately and fully informed of the activities of the Partnership Council, the Trade Partnership Committee, the Trade Specialised Committees and the other Specialised Committees established by the EU-UK Trade and Cooperation Agreement”.

It went on:

“The information concerns the briefing and debriefing before and after meetings of the joint bodies as well as sharing all documents pertaining to meetings of these joint bodies”.


When will the Government commit to equivalent arrangements for this House?

[Lord Frost (Con)]

My Lords, I am aware that officials from my department are in discussion with officials from the noble Lord’s committee. Our intention is that our proposals for scrutiny arrangements for the partnership council will mirror those for the Withdrawal Agreement Joint Committee as far as possible. This includes routine oral and written updates to committees, ministerial Written Statements before and after meetings, and the sharing of provisional agendas. We will also share meeting agendas for the specialised committees. Of course, this is a broad agreement, and many Ministers and committees will be involved in its scrutiny. We wish to take that forward in the most constructive way possible.

[The Deputy Speaker (Baroness Fookes) (Con)]

My Lords, the time allowed for this Question has elapsed. Apologies to those noble Lords still waiting.

Post Brexit: Economic and Political Opportunities

Lord Frost Excerpts

Thursday 25th March 2021 Lords Chamber

[Lord Rooker]

To ask the Minister of State at the Cabinet Office (Lord Frost) what evidence-based analysis Her Majesty’s Government are using to oversee the cross-government work on maximising the economic and political opportunities flowing from the United Kingdom’s departure from the European Union.

[The Minister of State, Cabinet Office (Lord Frost) (Con)]

My Lords, the UK’s future economic and political opportunities are maximised by the ability we now have to set laws which suit this country’s needs, rather than the lowest common denominator of EU member states. That is true when we review existing legislation and when we set new legislative frameworks for the industries of the future. In doing so, we will draw on economic and analytical support from within government departments and beyond them.

[Lord Rooker (Lab) [V]]

My Lords, I congratulate the Minister on his appointment to the Cabinet. I am surprised that there is no mention of the specific work of anybody. I cite the economic work of Crowley, Exton and Han from Cambridge University, and hope that he will look at it. I want to ask about political opportunities. Does he agree that for 2021, two large opportunities for the independent UK are the G7 and COP 26? Does he further agree that, to maximise these opportunities, it will be more effective to co-operate with the EU as an entity than via bilateral relations with member states?

[Lord Frost (Con)]

My Lords, I very much agree with the noble Lord that we have great opportunities on the world stage after Brexit. This year the G7 summit and COP 26 meeting are among the most important. Of course, we seek to co-operate with the EU and its member states in whichever way is most appropriate.

[The Earl of Kinnoull (Non-Afl)]

My Lords, I, too, warmly welcome the Minister to his first outing at Minister of State’s Questions. There are 24 committees and groups set up under the trade and co-operation agreements. They are, in effect, the instruments and controls in its cockpit, but the Government have said that there will be no meetings of these bodies until the end of the ratification period, which is now considerably extended, so the flight deck is empty. Given that the TCA is fully operational, what plans do the Government have to at least get meetings in the diary?

[Lord Frost (Con)]

My Lords, I have, of course, read the full and thoughtful report produced by the noble Earl’s committee, which was published on Monday, on this question and many others. We think that it is right to establish the Government’s arrangements fully when the treaty is fully in force and ratified on both sides, which we hope will be very soon.

[Baroness Noakes (Con)]

My Lords, does the Minister agree that the noble Lord, Lord Rooker, should concentrate on outcomes, not process, and that he need look no further than the terrific work being done by my right honourable friend the Secretary of State for International Trade, with 66 trade deals already done and more still to come as evidence of how the Government are delivering opportunities for the UK now that we are out of the EU?

--- Later in debate ---

[Lord Frost (Con)]

I very much agree with the thrust of my noble friend’s question. More than 60 trade treaties were rolled over last year, and a number of others are now under negotiation with the United States, Australia, New Zealand and so on, and we have an aspiration to join the CPTPP. My right honourable friend the Secretary of State for International Trade is doing an excellent job in this area, and I am sure she will continue to do so.

[Baroness Bull (CB)]

My Lords, the importance of international access for service industries and the integration of UK and EU services is well evidenced. Some 40% of services trade in the UK’s £116 billion creative sector flows to the EU, and the integrated review reminds us that these services enhance the UK’s soft power and its balance of trade. Will the Minister ensure that this evidence is taken into account in identifying future opportunities for the UK? If the existing evidence is not enough, can he tell us what further evidence is required to convince the Government to prioritise our world-leading, revenue-generating creative industries in future trade negotiations?

[Lord Frost (Con)]

My Lords, the UK is very much a services-based economy and the success of our services industries in all areas is essential for our future prosperity. We are well aware of the particular issues faced by cultural workers and we put forward solutions in the TCA negotiations to try to deal with them but, unfortunately, that was not possible. We are now working energetically with our European friends bilaterally to see whether we can reduce the most difficult barriers and will continue to do so.

[Lord McConnell of Glenscorrodale (Lab)]

My Lords, as a Minister and as First Minister of Scotland, I was regularly engaged in developing negotiating positions and in other debates on the UK’s position in discussions with the European Union. What arrangements has the Minister put in place to engage with the devolved Governments as part of these new arrangements with the European Union? Specifically, how will he engage with civic society and business in Scotland to ensure that their views are being heard?

[Lord Frost (Con)]

My Lords, we engaged very closely with the devolved Administrations last year during the TCA negotiations and in the implementation of the withdrawal agreement. At the moment, we are considering the best way of engaging the devolved Administrations most effectively in the new governance arrangements that have been set up, and I expect we will want further discussions on that matter before too long.

[Lord Purvis of Tweed (LD)]

My Lords, when I asked the Minister last week about the absence of the EU/UK agreement impact assessment, he told me:

“The economic situation last year, the impact of the pandemic and the huge uncertainties made it very difficult to conduct an analysis.”—[Official Report, 18/3/21; col. 447.]


However, that was not the case for the UK/Japan agreement he referred to, on which a 107-page assessment was published at the end of October. The Minister just told the House that the Government are drawing on economic and analytical support within government. Will the British Parliament be able to see any of it?

[Lord Frost (Con)]

My Lords, the Government routinely publish much information and analysis of this country’s economic prospects. They most recently did so around the Budget earlier this month. Many other bodies, such as the OBR and the ONS do likewise. There is a good deal of comment on the prospects for this country after Brexit, economically and otherwise, and we are not convinced that further publications at this point would add to this very rich debate.

[Lord Hamilton of Epsom (Con)]

Can my noble friend enlighten the House on the progress he is making with the export of shellfish from the UK to the EU? Does he accept that the EU has acted in bad faith in its strict adherence to the rules? Is he contemplating that we might retaliate in kind?

[Lord Frost (Con)]

My Lords, we obviously regret the situation that has arisen with the difficulties in exporting shellfish to the European Union after 1 January. Clearly, nothing changed in the safety of British shellfish or British waters at midnight on 31 December. We are continuing to work with the Commission and member states to see whether we can resolve this situation.

[Baroness Smith of Basildon (Lab)]

My Lords, like the noble Lord, Lord Hamilton, I want to return to an issue we touched on last week when the Minister appeared to dismiss concerns about the January fall in exports, saying:

“A unique combination of facts has made it inevitable”.—[Official Report, 18/3/21; col. 445.]


The Food and Drink Federation does not share his complacency, having seen its members’ exports to the EU collapse by 75% in the past year but by only 11% to the rest of the world. It is clear that the Brexit negotiations, which the Minister was part of, had a hugely significant impact, particularly on small businesses, so I have two questions for him. First, if the fall really was inevitable, why did he not tell businesses beforehand? Secondly, will he urgently convene a meeting, not- withstanding his earlier comments, of the partnership council and the special trade committees to try to save British exports?

[Lord Frost (Con)]

My Lords, the economic situation is clearly hugely influenced by many factors including stock building, the implementation of the Trade and Cooperation Agreement and the effects of the pandemic, which has dramatically affected markets in Europe, to which many of our smaller companies and food companies export. We are working very closely with all those companies to deal with the difficulties they face, and we will continue to do so in support of our great food and drink industry.

[Viscount Waverley (CB)]

My Lords, I echo the approach of the noble Baroness, Lady Smith, to this question. The first set of concrete numbers are now available and starting to speak for themselves. What is the reaction to Santander UK’s recent barometer survey published this week showing that 16% of the businesses surveyed—equating to 1,000 businesses—say that European supply chains are no longer viable and 23% say that the increase in the costs of bureaucracy currently prohibits them trading with existing UK markets? Then there is this morning’s news that Santander UK is closing 111 UK branches with the loss of 5,000 jobs. What plans do the Government have to fix these issues?

[Lord Frost (Con)]

My Lords, the ongoing pandemic is clearly having a significant effect on the economic situation in Europe and in the UK. That cannot be removed from the economic situation we are trying to consider. We are working very closely with goods exporters, services exporters and all companies to enable them to deal with the new processes they face to ensure that they can continue to prosper after Brexit.

[The Lord Speaker (Lord Fowler)]

My Lords, the time allowed for this Question has elapsed. We now come to the second question.

Protocol on Ireland/Northern Ireland

Lord Frost Excerpts

Thursday 25th March 2021 Lords Chamber

[Baroness Crawley]

To ask the Minister of State at the Cabinet Office (Lord Frost) why Her Majesty’s Government unilaterally extended the grace period for checks on trade between Great Britain and Northern Ireland under the Protocol on Ireland/Northern Ireland.

[The Minister of State, Cabinet Office (Lord Frost) (Con)]

My Lords, the temporary operational measures announced by the Government earlier this month were taken to avoid disruption to supermarket supplies and parcel deliveries, in accordance with the protocol’s aim to minimise disruption to everyday lives in Northern Ireland. We continue to discuss the implementation of the protocol with the EU within the joint committee framework.

[Baroness Crawley (Lab) [V]]

I thank the Minister and welcome him to his new post. Why did the Government not listen to the 29 trade associations that said in December that there were not enough official vets to cope with the new rules requiring export health certificates for trade in animal products crossing the Irish Sea? He tweeted on 12 March:

“overall freight volumes between the UK and the EU have been back to their normal levels for over a month now”.

Is he saying that for the first quarter of 2021 the volume of trade between the EU and UK will be approximately the same as for the first quarter of 2020? If not, what is he saying exactly?

[Lord Frost (Con)]

In answer to the first part of the question, I say that we work very closely with companies wishing to trade into Northern Ireland and have set up a movement assistance scheme specifically designed for companies exporting food and drink. On the second part, I say what I said in my tweet—freight volumes are back to normal and have been since the beginning of February. We must await official figures for trade value, and those are subject to some of the same considerations discussed earlier.

[Lord Caine (Con)]

Does my noble friend agree that, under the Belfast agreement, Northern Ireland is not a hybrid state but an integral part of the United Kingdom —ultimate responsibility for which rests with the sovereign United Kingdom Government? Where there is evidence that the protocol is not working as envisaged—as the Prime Minister recently acknowledged —and Northern Ireland is disadvantaged, is it not the duty of Her Majesty’s Government to take whatever action is necessary to remedy that, unilaterally if required?

[Lord Frost (Con)]

My noble friend is absolutely right; Northern Ireland is not subject to some sort of co-governance arrangement with the EU. Northern Ireland is fully part of the United Kingdom, its custom arrangements and internal market. The protocol is extremely clear on this point. However the protocol is implemented, it must be done in a way consistent with these fundamental provisions.

[Lord Kerr of Kinlochard (CB) [V]]

One of the effects of the Minister’s decision on the grace period is that nobody now knows when the new treaty will be ratified. I take him back to his answer to the noble Earl, Lord Kinnoull, and the Government’s February decision that the entire governance structure under the new treaty—all the myriad committees charged with tackling practical problems, tying up loose ends and rebuilding relations—should stay on ice until after ratification. No one knows when ratification will be. The report by the EU Select Committee chaired by the noble Earl, Lord Kinnoull, saw no justification for allowing matters to drift in this way. The Minister’s answer suggests that he does not agree. If so, what is his justification for this drift and what was the withdrawal agreement legal base for his unilateral decision on the grace periods?

[Lord Frost (Con)]

My Lords, our expectation is that the trade and co-operation agreement will be ratified by the end of April. We have agreed to that in the partnership council by written process. We look to the European Union to uphold that obligation. The unilateral measures were lawful as part of a progressive and proportionate implementation of the protocol.

[Lord Adonis (Lab)]

My Lords, the Irish Foreign Minister, Simon Coveney, said that a road map to the full implementation of the Northern Ireland protocol was needed. Since the noble Lord has taken office, has he had the chance to meet Mr Coveney? If not, does he have plans to do so at an early date? There are many of us who think that, on the basis of the noble Lord’s distinguished diplomatic record, he might do a better job spending more time on diplomacy and less time issuing ideological declarations.

[Lord Frost (Con)]

I have of course had a conversation with the Irish Foreign Minister, as I have with many Ministers around Europe. Our intention is to pursue the issues arising from the protocol through dialogue, both with the Commission and with our European friends.

[Baroness Suttie (LD) [V]]

My Lords, further to his earlier replies to the noble Lord, Lord Mandelson, and the noble Baroness, Lady Ludford, can the Minister confirm that concluding a bespoke EU-UK veterinary agreement will be a key priority during the grace period? Does he feel that progress is already being made in that regard?

[Lord Frost (Con)]

My Lords, the European Union has a number of SPS and veterinary agreements with third countries based on equivalence, not dynamic alignment. We continue to be open to an arrangement based on equivalence. At the moment, our understanding is that the European Union does not wish to negotiate such an arrangement.

[Lord Liddle (Lab) [V]]

My Lords, I welcome the noble Lord, Lord Frost, to his distinguished place on the Front Bench; I have many good memories of working together on European issues in the Blair Government. When it comes to making the Northern Ireland protocol work more flexibly, the key question surely is about trust between the Commission and the British Government. Will he seize this golden opportunity today to affirm publicly that the British Government are not seeking to scrap the Northern Ireland protocol or negotiate any changes to the text that the Prime Minister himself agreed?

[Lord Frost (Con)]

I too have happy memories of working with the noble Lord in a rather different context a few years ago. Our clear position is that the protocol depends on the consent of all the people of Northern Ireland. As long as that consent is not maintained, it is difficult to see how the protocol can be genuinely durable. We are working to sustain the protocol, but in a pragmatic and proportionate fashion.

[Lord Lamont of Lerwick (Con) [V]]

My Lords, I too welcome the Minister. Is he aware that some of us strongly support his unilateral action in extending the grace periods? Without them there would be shortages of food and no medicines in Northern Ireland. Banning British sausages in Belfast hardly strengthens the Good Friday agreement, but a temporary waiver is not a permanent solution to these problems. Is he confident that there is sufficient flexibility and potential easements in the protocol for a permanent solution, or is it going to require action under Article 16?

[Lord Frost (Con)]

I thank my noble friend for his words of support for the operational measures that we took earlier this month. These measures are lawful and consistent with the progressive and good-faith implementation of the protocol. They are intended to avoid disruption to everyday life in Northern Ireland, which we would otherwise have seen. We are working with the Commission to see if we can find solutions to those problems and many others on a more permanent basis, and we continue to pursue that actively.

[Baroness Hoey (Non-Afl) [V]]

My Lords, I give full support to Her Majesty’s Government in taking the action to extend the grace period for trade checks between GB and NI. In the face of the belligerent attitude of the EU at the joint committee, I believe that there was no alternative. However, does the noble Lord agree that the trade border is now on the island of Ireland, at Belfast, Larne and so on? As such, if it can be there, is there any credible reason why it cannot be moved to inside EU territory—specifically, inside the Irish Republic—making the EU responsible for the protection of its internal market?

[Lord Frost (Con)]

I thank the noble Baroness for her words of support and for acknowledging that we had no choice in the operational measures that we took earlier this month. The protocol depends on cross-community support and the consent of the majority of the Northern Ireland Assembly. As a matter of logic, if that consent were not to be renewed in the future, it would have implications that all sides would need to consider at that point.

[The Deputy Speaker (Lord Faulkner of Worcester) (Lab)]

My Lords, the time allowed for this Question has elapsed. There will now be a brief business statement.

Northern Ireland and Great Britain: Trade

Lord Frost Excerpts

Thursday 25th March 2021 Lords Chamber

[Lord Hain]

To ask the Minister of State at the Cabinet Office (Lord Frost) what initiatives Her Majesty’s Government will pursue in the European Union–United Kingdom Joint Committee to reduce the burdens for businesses in Northern Ireland trading with Great Britain.

[The Minister of State, Cabinet Office (Lord Frost) (Con)]

My Lords, we are committed to and have legislated to ensure unfettered access for Northern Ireland goods moving to the rest of the UK market as a unilateral UK matter. As to goods’ movement between Great Britain and Northern Ireland, we continue to be committed to working through the joint committee to provide pragmatic and sustainable arrangements for east-west trade, and we are supporting all our businesses in doing so.

[Lord Hain (Lab)]

Does the Minister now acknowledge that his fiendishly complex barriers to trade between Great Britain and Northern Ireland are throttling local businesses and undermining political stability? Surely the joint and specialised committees that he co-chairs with the EU are fully capable of resolving these problems—or are they simply the direct and inevitable consequence of the Prime Minister’s dogmatic obsession with a hard Brexit? Surely the Minister accepts that unilateral suspensions of, and inflammatory calls to renege upon, the Irish protocol—negotiated by him and agreed by his Government—are also eroding trust with future trading partners, as President Biden has ominously signalled.

[Lord Frost (Con)]

My Lords, the best way of dealing with the issues that are arising on trade between Great Britain and Northern Ireland is for the Northern Ireland protocol to be implemented in a pragmatic and proportionate manner that is consistent with all its aims. That is what we intend to do and we are working with the European Union to that effect.

[Lord Howard of Rising (Con) [V]]

My Lords, by its recent actions the European Union has shown that it respects the Belfast agreement only when it suits it. The actions of the European Union on 29 January surprised and shocked all those who understand the importance of the peace process. How does the Minister propose to act to safeguard the Belfast agreement and the peace process?

[Lord Frost (Con)]

My Lords, this Government stand fully behind the Belfast/Good Friday agreement. It is central to our policy on Northern Ireland. The most important thing about the Northern Ireland protocol is that it should guarantee the Belfast/Good Friday agreement and the peace process. If it is failing to do that, it is not working well; that is why we think that a pragmatic, proportionate and appropriate implementation of the protocol is the right way forward.

[Lord Mandelson (Lab) [V]]

My Lords, the Government are in real danger of blundering around in Northern Ireland on these sensitive trade issues. The unionists feel, understandably, that putting a trade border down the Irish Sea is a betrayal of their community. To mitigate this, will the Government seek a Swiss-style veterinary agreement with the European Union, which would eliminate many—not all, but many—of the trade barriers created when the Government originally entered the withdrawal agreement? Is there any downside, in the Minister’s view, to such a veterinary agreement that is more important than smoother trade and political stability in Northern Ireland?

[Lord Frost (Con)]

My Lords, the noble Lord is correct in the implication of his question: that the protocol must be implemented in a way which protects the Belfast/Good Friday agreement in all its dimensions, east-west as well as north-south. On the question of a SPS or veterinary agreement, we proposed in the TCA negotiations last year that there could be an equivalence arrangement between us and the EU. Unfortunately, the EU was not open to that. We continue to be open to such an equivalence arrangement, if the EU is interested in it.

[Baroness Ludford (LD) [V]]

My Lords, I too want to press on the issue of an SPS agreement. It is not only that a lot of the problems of deliveries from Great Britain to Northern Ireland concern foodstuffs and plants; exports of products such as shellfish and Scottish salmon from Great Britain to the EU have been massively hit by Brexit red tape. The noble Lord, Lord Mandelson, asked the Minister specifically whether there was any downside to an SPS agreement. He did not answer that question, so why are the Government not seeking a veterinary so-called SPS agreement?

[Lord Frost (Con)]

My Lords, the downside to a Swiss-style SPS or veterinary agreement is that it would require our food and drink sector to accept not laws that were made in this country but the laws of the European Union. As far as this Government are concerned, that is quite a considerable downside to such an agreement. It is why we cannot accept one that is based on dynamic alignment.

[Lord Murphy of Torfaen (Lab) [V]]

My Lords, for over 20 years, discussion and dialogue have been at the heart of the Northern Ireland peace process and the protocol should be no exception to this. Will the Minister talk to the European Union through the joint committee, and to the Irish Government through the British-Irish Intergovernmental Conference, which was set up by the Good Friday agreement, and, above all, talk to all the political parties represented in the Northern Ireland Executive and their leaders? Only by talking will we ultimately resolve these issues.

[Lord Frost (Con)]

My Lords, I very much agree that dialogue is extremely important. I and my team are in constant touch with Vice-President Šefčovič and his teams, and of course my right honourable friend the Secretary of State for Northern Ireland also has many contacts in Northern Ireland. I am pleased to say that there will be a specialised committee tomorrow, 26 March, within the joint committee framework to consider all the issues related to implementing the protocol. We continue to pursue dialogue in that framework.

[Lord Moylan (Con)]

My Lords, while the Northern Ireland protocol remains in place, British medicines going from Britain to Northern Ireland will, from 31 December this year, need not only to comply with EU regulation but to be batch-tested inside the EEA. They could therefore be hostage to capricious EU export bans. Will my noble friend assure the people of Northern Ireland that the Government will guarantee them a continuous, reliable supply of medicines, including any necessary vaccine boosters, even if that requires the Government to take unilateral action?

[Lord Frost (Con)]

My Lords, the people of Northern Ireland must of course have access to a wide availability of medicines and pharmaceutical products, just as in any other part of the UK. There is, of course, a grace period in place until the end of this year for the protocol provisions. We have proposed, as is known to the EU, that this should be extended by a further year. We continue to discuss this matter.

[Lord Dodds of Duncairn (DUP)]

My Lords, given that the protocol prevents the flow of free trade within the United Kingdom internal market and stops any elected representative, either at Stormont or here at Westminster, having any say or vote on laws which govern a large degree of the economy of Northern Ireland, does my noble friend agree that these matters must be addressed and corrected at the earliest opportunity; that we as a sovereign, independent country must ensure that the people of Northern Ireland are treated in the same way as people elsewhere in the United Kingdom; and that we have to do this to ensure that we have a stable future for devolution and a balanced and proper implementation of the agreements, not a one-sided interpretation and implementation of them?

[Lord Frost (Con)]

My Lords, the noble Lord is absolutely correct to say that the future of the protocol depends on the consent of the elected representatives and the people of Northern Ireland. If that consent is not maintained, it is difficult to see how the protocol can be genuinely durable. All sides must work to sustain it. The EU needs to be aware of the impact its decisions have had on the ground in Northern Ireland in recent months, and continue to work to implement the protocol in a pragmatic and proportionate fashion.

[Lord Stevenson of Balmacara (Lab) [V]]

My Lords, touring and performing in Europe is crucial to our creative industries in Northern Ireland. Will the Minister take the opportunity to put on record today the reason why HM Government rejected the offer made in the EU draft legal text of March 2020 to exempt musicians and artists from any new visa requirements or restrictions on short-term work on the continent?

[Lord Frost (Con)]

My Lords, the British people voted to end free movement in 2016 and that was a central part of our approach to the negotiations in 2020. The specific proposal made by the European Union would not have dealt with all the difficulties that cultural workers face. The proposal that we made would have, so we regret that agreement on it was not possible, but we continue to discuss this matter bilaterally now with European member states.

[The Deputy Speaker (Lord Faulkner of Worcester) (Lab)]

My Lords, the time allowed for this Question has elapsed.

UK-EU Trade

Lord Frost Excerpts

Thursday 18th March 2021 Lords Chamber

[Lord Adonis]

To ask Her Majesty’s Government what assessment they have made of the impact of the United Kingdom– European Union Trade Cooperation Agreement on the reduction in trade with the European Union since 1 January.

[The Minister of State, Cabinet Office (Lord Frost) (Con)]

My Lords, the Trade and Cooperation Agreement provides for 100% tariff-free and quota-free access to each other’s market for the UK and the EU. It is first trade agreement in the world to do so. A unique combination of facts has made it inevitable that we would see a reduction in trade with the EU in January, and we should use caution in drawing any conclusions from the initial figures released on 12 March.

[Lord Adonis (Lab)]

My Lords, I thank the Minister for that Answer. We are, of course, where we are, but I am sure he would agree we have a particular problem at the moment with the export of animals, meat and shellfish, where exports are down by between 56% and 83%. Will the Minister agree to meet me and other noble Lords from across the House who are acutely concerned about this issue and wish to see it sorted, including the possibility of the Government negotiating a sanitary and phytosanitary agreement similar to that which Switzerland currently enjoys with the European Union?

--- Later in debate ---

[Lord Frost (Con)]

My Lords, I am always happy to meet anybody to talk about the issues relating to the Trade and Cooperation Agreement. We have, of course, pulled out all the stops to help businesses deal with the changes to our trading relationship with the EU, whether they are operating in these fields, whether they are SMEs or whether they are working in the agri-food or any other area.

[Lord McNicol of West Kilbride (Lab)]

My Lords, new figures released last week, as the Minister touched on, show that UK exports to the EU have plummeted by 40% since the transition period. Do Her Majesty’s Government take responsibility for that and, more importantly, will the Minister elaborate on the plans to rectify that reduction in trade?

[Lord Frost (Con)]

My Lords, there are several potential factors affecting trade with the European Union, as well as any direct impact coming from the TCA. There is clear evidence of stockpiling at the end of last year, which will of course affect the flow of trade, and obviously there is the general economic impact of the coronavirus pandemic, which has depressed economic activity in many ways. That is why we must be cautious before drawing any firm conclusions from the January figures.

[Viscount Trenchard (Con)]

My Lords, the TCA gives us the freedom and the opportunity to develop our own regulatory regime for the City, to maintain and enhance its position as the leading global financial centre. Does the Minister agree that we should be bold and swift in making necessary changes to our EU legacy regulatory framework, while taking a proactive leadership role in international fora such as IOSCO in developing proportionate principles-based rules at the global level? Does he also agree that it will manifestly not be the EU’s interests to continue to try to prevent European companies raising capital and accessing services provided in the UK’s financial markets?

[Lord Frost (Con)]

My Lords, I very much agree with the thrust of my noble friend’s question. I endorse his view that we should use our freedom to develop our financial services industry, and the framework that regulates it, over time in a way that suits us, and build the City’s huge advantages as a global financial centre.

[Lord Purvis of Tweed (LD)]

My Lords, last year I asked the noble Lord, Lord True, what work the Government were doing to forecast an assessment of the various complexities that the Minister referred to. He wrote to me on 19 May, saying:

“A call for evidence will open in the coming months, and we will provide further details in due course. The call for evidence will capture complexity and represent the varying impacts that will be felt across different parts of the economy. We will continue to keep Parliament informed.”


There was no call for evidence, and the Government have not kept Parliament informed. Does there exist any forecast from the Government that shows that by value to the UK economy, UK trade with the EU will grow?

--- Later in debate ---

[Lord Frost (Con)]

My Lords, the question of the economic benefits or disbenefits of our relationship with the European Union has been extensively debated over the last few years. There have been many publications on the subject, including from this Government. The economic situation last year, the impact of the pandemic and the huge uncertainties made it very difficult to conduct an analysis. We of course continue to keep this question under very close review.

[Lord Lucas (Con) [V]]

My Lords, there are clearly problems with companies not being used to the new procedures. I know from experience how helpful BEIS and HMRC can be to a European company that has made a pig’s ear of its paperwork. Are their European equivalents being similarly helpful to British companies which have not got the procedures right?

[Lord Frost (Con)]

My Lords, it is true that there have been some problems and some overzealous enforcement in isolated cases, which have been well publicised. However, I take this opportunity to say that generally the European authorities have been very supportive and pragmatic in the way they have dealt with issues at the border, and we welcome that fact. Operational co-operation with member states, in particular our closest neighbours, has been excellent.

[The Earl of Clancarty (CB)]

My Lords, the Minister will be aware of the huge problems in relation to work in Europe confronting our valuable music sector. Jobs have already been lost and tours cancelled as a result of the lack of suitable arrangements in the TCA. Is the Minister aware that the main ask of the performing arts is for a separate, bespoke visa waiver agreement, which would go a long way to resolving key concerns? Will he promise to discuss such an agreement with Maroš Šefčovič at the earliest opportunity?

[Lord Frost (Con)]

My Lords, the Government of course recognise the importance of the UK’s cultural industries. We made proposals during the negotiations last year that would have allowed musicians to travel and perform in the UK and the EU more easily without work permits. They were rejected by the European Union. Now that negotiations are over, we are working with the sector to help it adjust to this new relationship. We have a working group with industry representatives which is feeding into our process. We are of course discussing a range of issues with Maroš Šefčovič as regards the implementation of the TCA.

[Baroness Smith of Basildon (Lab)]

My Lords, I thank the Minister for agreeing to meet the noble Lord, Lord Adonis, on the issues he raised, but in response to my noble friend Lord McNicol, he seemed reluctant to admit that there was a problem and he certainly did not answer the part of the question about what the solutions were, so I shall try again. Your Lordships’ House has been fully engaged in preparing the UK for its new relationship with the EU. There has been an unprecedented number of documents, Bills and statutory instruments that we have all waded our way through to get to the detail, but all behind ensuring support for the Government’s border plans. Yet here we are, less than three months in, and that model is creaking. The Minister is now tearing up plan A in order to push back implementation dates. Can he tell us what he thinks has gone wrong?

[Lord Frost (Con)]

My Lords, as I say, it is too early to draw conclusions from any figures in January; there are too many other factors influencing the economic situation. We have always made clear and are assiduously implementing our plans to get businesses the support they need to manage the changes to our trading relationship with the EU. There is a new Brexit support fund and a Brexit business taskforce. We are supporting the fisheries industries and many others through the initial difficulties of the change in relationship.

[Baroness Ludford (LD) [V]]

My Lords, rather than trying to deny the reality of the massive drop in exports to the EU, the Government need to address how practical improvements can be made regarding Brexit red tape. So far, their approach to solving border problems is simply to refuse to apply the rules that they agreed to. How will the Government establish trust and a good relationship with Brussels and member states that are essential to getting those improvements to help business and consumers?

[Lord Frost (Con)]

My Lords, of course we seek a constructive relationship with our European friends in all areas relating to the trade and co-operation agreement, and we look to build a friendly relationship between sovereign equals. That is what we intend to do. That is what we are working towards. We are acting constructively when we can, but we are standing up for our interests when we must.

[Lord Loomba (CB) [V]]

My Lords, after leaving the EU, the UK has the advantage of trading with any country around the world. The EU has already negotiated a trade agreement with China and, considering our present relationship with China on account of human rights, can the Minister tell us whether the UK will be able to sign a trade agreement with China? If so, when is it likely to happen?

[Lord Frost (Con)]

My Lords, the Department for International Trade made a huge and successful effort last year to roll over many of the trade agreements that we benefited from as an EU member and is negotiating a large number of new agreements at the moment. I note that in its 12 March press release relating to the trade figures the Office for National Statistics noted that there was already a visible potential benefit from our agreement with Singapore and markets in Asia. That shows the benefits we can gain from such agreements in future.

[The Lord Speaker (Lord Fowler)]

My Lords, the time allowed for this Question has elapsed and it brings Question Time to an end.